Is Activision Likely to Outperform?

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E = Equity to Debt Ratio Is Strong  

The debt-to-equity ratio and balance sheet for Activision are perfect.   

Debt-To-Equity

Cash

Long-Term Debt

ATVI

0.00

$3.96 Billion

$0

EA

0.28

$1.49 Billion

$554.00 Million

TTWO

0.67

$328.28 Million

$325.54 Million

 

T = Technicals on the Stock Chart Are Strong

Activision hasn’t performed as well as many other stocks throughout the broader market over the past few years, but the industry had been hurting for a while. Currently, that trend might be reversing itself.

Activision has outperformed Electronic Arts (NASDAQ:EA) and Take-Two Interactive (NASDAQ:TTWO) over the past year. Activision is the only company of the three that offers yield, which is currently 1.50 percent.

1 Month

Year-To-Date

1 Year

3 Year

ATVI

22.66%

26.93%

8.96%

38.50%

EA

25.71%

19.21%

-5.10%

-0.58%

TTWO

27.33%

36.24%

-6.89%

58.73%

 

At $13.54, Activision is trading above all its averages.  

50-Day SMA

12.36

100-Day SMA

11.74

200-Day SMA

11.15

 

E = Earnings Have Been Steady            

Earnings and revenue have improved every year over the past five years.  

2008

2009

2010

2011

2012

Revenue ($)in billions

3.03

4.28

4.45

4.76

4.86

Diluted EPS ($)

-0.11

0.09

0.33

0.92

1.01

 

When we look at the last quarter on a year-over-year basis, we see an increase in revenue and earnings.

12/2011

3/2011

6/2012

9/2012

12/2012

Revenue ($)in billions

1.41

1.17

1.08

841.00M

1.77

Diluted EPS ($)

0.08

0.33

0.16

0.20

0.31

 

Let’s take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

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